Refer to Scenario 10.6. If red rubber balls can be produced at any of the three plants, and John decides to produce 1 red rubber ball, at which plant will he produce it?
A) California
B) Florida
C) Montana
D) He is indifferent between California and Florida.
E) He is indifferent between Florida and Montana.
C
You might also like to view...
Suppose a monopolist has TC = 100 + 10Q + 2Q2, and the demand curve it faces is p = 90 - 2Q. What will be the price, quantity, and profit for this firm?
What will be an ideal response?
The graph shown demonstrates a tax on sellers. Once the tax has been imposed, the sellers produce ____ units and receive _____ for each one sold.
A. 15; $16
B. 15; $6
C. 31; $9
D. 31; $19
Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100 ? P Type B Demand QD = 50 ? P Where Q measures the quality of flood control. If the price of a unit of flood control is $100,000 and the citizens of Toadhop gather for a townhall meeting to
find the socially optimal level of flood control, and they are successful, how much will each type B individual contribute in total? a. 1875 b. 1500 c. 875 d. 625
The supply of a good is more price elastic
a. the more alternatives there are to producing the good in question b. the more broadly the market for the good is defined. c. the shorter the time horizon over which it is measured. d. the higher the cost of production. e. the more elastic the demand for that good.